Lockheed Martin shares slipped in premarket trading Tuesday after the defense giant reported fourth-quarter earnings that were just shy of Wall Street’s expectations.
- Earnings: $4.39 a share vs. $4.40 a share expected, according to analysts surveyed by Refinitiv.
- Revenue: $14.4 vs. $13.75 billion expected, according to analysts surveyed by Refinitiv.
Lockheed Martin said it expects 2019 earnings a share within a range of $19.15 a share to $19.45 a share, below Wall Street’s expectation of $19.57 a share according to FactSet.
The defense company added language regarding “the impact of government shutdowns” to its list of factors which may affect any forward-looking statements. The partial U.S. government shutdown, caused by an impasse over President Donald Trump’s demand for $5.7 billion to construct a border wall, ended Friday on its 35th day. While the partial government shutdown did not impact the Pentagon, some defense firms hold contracts with agencies like NASA and the Department of Homeland Security — which were not funded for nearly five weeks.
Lockheed Martin shares slipped 0.6 percent in premarket trading from Monday’s close of $287.87 a share.
From combat ships to hypersonic missiles to fighter jets, Lockheed Martin remains the world’s top weapons manufacturer.
In 2017, the Bethesda-based arms giant brought in $44.9 billion in sales, an 8.3 percent increase from 2016, according to a report by the Stockholm International Peace Research Institute, also known as SIPRI.
This year, Lockheed Martin snatched both of the Pentagon’s new hypersonic weapon contracts and continued delivery of its F-35 fighter jet, America’s most expensive weapons system.
The defense giant also saw the signing of a letter of offer and acceptance between the United States and Saudi Arabia for for the THAAD missile system. The government-to-government agreement helped pave the way for the $15 billion sale which includes 44 THAAD launchers, missiles and related equipment.
Manufactured by Lockheed Martin, THAAD, or terminal high altitude area defense, is regarded as America’s crown jewel in missile defense systems.